The City of Toronto will be discussing several options for the future of Old City Hall next week, including a new retail or gallery space.

Located at the corner of Bay and Queen Streets, Old City Hall served as the meeting place for municipal politicians between 1899 and 1966.

The 116-year-old building was nearly demolished when the Eaton Centre was built in the 60s, but a group of citizens convinced the city to preserve the landmark.

The building has operated as both a municipal and provincial courthouse since 1972, but the courts' lease will not be renewed past Dec. 31, 2016.

The issue of what to do with the building will be debated during a meeting of the city's Government Management Committee on Monday, Oct. 5.

A background report compiled by the city's Chief Corporate Officer Josie Scioli recommended that the lease be extended for a term of five years, until the province builds a new court facility.

The province estimates its new facility will be completed by 2023, and has requested an extension to bridge the time between the end of their current lease and the occupancy of the new building.

However, the report said that the "highest and best use" for the building would be a retail centre, with space to be used for food service, leisure and events.

The report also suggested using the building for international trade, arts and culture, innovation and technology or post-secondary education. The space could also be used to house a bank or a corporate office.

"The arrangement could be similar in concept to the city's long-term lease agreement for retail at Union Station," the report said.

"The recommended term for the lease would be 50 years with the rental rate to be re-negotiated at each 10-year mark."

The proposed rent for the space is recommended at $40 to $41 per square foot of rentable area, or between $9.5 million and $9.7 million per year.

The report recommends that the city's real estate services division begin seeking potential renters for the long-term lease of the property.

"In order to generate and maintain market interest in Old City Hall, the plan should be implemented within a time period not exceeding five years," the report said.